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Some of the relevant definitions are reproduced hereunder for the proper understanding and adjudication of the case:

"cable operator" means any person who provides cable service directly to customers or transmits signal to sub-cable operator through a cable-television network and otherwise controls or is responsible for the management and operation of a cable television network; "Sub-cable operator" means person, other than any owner or person who is cable operator referred to in this sub-section, who, on the basis of an agreement, contract or any other arrangement made between him and such cable operator, receives signal from such cable operator and provides cable service for exhibition of performance, film or any programme to the customers;

We heard Mr. V.R. Reddy, learned senior counsel for the appellants and Mr. Dushyant Dave, learned senior counsel for respondent Nos. 1 & 2 and Dr. A.M. Singhvi, learned senior counsel for the Applicants in IA No.1. I.A. No.1 was allowed to the limited extent that the applicant therein should have the liberty of addressing the Court in support of the respondents but without filing any pleadings.

Mr. V.R. Reddy, learned senior counsel for the appellant, after inviting our attention to the relevant sections and of the definitions, judgments and annexures, submitted that the High Court has erred in declaring clause (ii) of sub-Section (4a) of Section 4A of the Act is ultra vires. According to him, clause (i) of sub-section (4a) of the Act falls within the legislative competence of the State Legislature and is not ultra vires to the Constitution. Respondent No. 1 who is engaged in receiving and providing TV signals to individual sub-cable operators is liable to pay tax under clause (ii) of sub-section (4a) of Section 4A of the Act which has come into force on 01.04.1998. The said sub-section (4a) has been substituted by an amendment made by the West Bengal Finance Act, 1998. According to the provisions of the said clause (ii) of sub-section (4a), any owner or person having in possession, of any electrical, electronic or mechanical device who receive through such device the signal of any performance, film or any other programme telecast and thereafter transmits such signals to a sub-cable operator against payment received and receivable by him is liable to pay tax on his monthly gross receipt for transmitting such signals of any performance, film or any other programme telecast to a sub- cable operator. It was submitted that respondent No.1 is a multi-system operator who receives TV signals and transmits such signals to his sub-cable operators through his cable television network, is a cable operator within the meaning assigned by the explanation of sub-section (4a) of Section 4A of the Act. After transmission of such signal by respondent No.1 to their sub- cable operator they, in turn, provide cable service for exhibition of such performance, film or programme to individual customers and entertain them. It was further submitted that respondent No.1 admittedly controls and is responsible for the management and operation of the cable television network.

The Cable Television Networks (Regulation) Act, 1995, a central legislation has been enacted to regulate the operation of cable television networks in the country and for matters connected therewith. This enactment does not, in our opinion, fetter the legislative power or competence of the State to levy tax on luxuries including taxes on entertainments, amusements, betting and gambling falling under Entry 62 of List II of Seventh Schedule to the Constitution. The power of regulation or control under the said central enactment is separate and distinct from the power of taxation by the State legislature under Entry 62 of List II being a specific power, the power of taxation cannot be cut down or fettered by the general power or regulation as exercised by the Parliament in enacting the said 1995 Act. Under the Legislative field exclusively reserved for the State Legislature, the levy of tax by more than one statute on different taxable objects and taxable persons is not prohibited by the Constitution of India. The Bengal Amusement Act, 1922 and the West Bengal Entertainment and Luxurious (Hostel and Restaurants) Act, 1972 are two statutes which have been enacted under the same legislature field i.e. Entry 62 of List II of Seventh Schedule to the Constitution of India, and the two statutes apply admittedly to levy of tax on amusements, entertainments and luxuries in their respective area but the area of application of the said 1982 Act is different as would evident from the provisions of 1922 Act and the 1972 Act as aforesaid. The said 1982 Act was, for the first time, enacted by the State Legislature in 1982 and its area of application was initially confined to levy and collection of tax from the holders of television set or sets under Section 4 of that Act. Thereafter, under Section 4A of that Act, inserted by the West Bengal Taxation Laws (second Amendment) Act, 1983, the area of its application was extended to levy and collection of tax from the holders of video cassette recorder. The purpose of sub-Section 4(a) of Section 4A of the Act is to levy and collection of tax from any person who provide cable service directly to consumers or transmits to a sub-cable operator through a cable television network and otherwise controls or is responsible for the management and operation of a cable television network and such person has been defined as "Cable Operator" being a taxable person exclusively for the purpose of levy and collection of entertainment tax only when a cable operator so defined receives through any electrical, electronic and mechanic device the signal of any performance, film or any other programme telecast and provides cable service directly to consumers or transmits signals to a sub-cable operator through a cable television network and otherwise controls or is responsible for the management and operation of a cable television network. The person who has been defined as cable operator exclusively for the purpose of levy and collection of entertainments tax has a direct and proximate nexus with the amusements and entertainments to the viewers at every home or place inasmuch as he is the person directly connected with presentation of entertainments to the subscribers. A person is also a "cable operators" for the purpose of sub-Section 4(a) of Section 4A of the said 1982 Act when he receive the signal of any performance, film, or any other programme telecast and transmits such signal to a sub-cable operator through cable television network or otherwise control or is responsible for the management and operation of cable television network against payment received or receivable by him. Therefore, a cable operator is the source of entertainment to the individual subscribers because, it is he who receives the signal of performance, film, and any programme which transmitted or given to a large number sub-cable operator (although they call them as cable operator). The viewers enjoy, or are entertained by such performance, film, or programme because of receiving and transmitting video or audiovisual signals through coaxial cable or any other device by the respondents. No entertainment can be presented to the viewers unless a cable operator transmits the video and audio signals to a sub-cable operator for instantaneous presentation of any performance, film or any programme on their T.V. screen. The sub-cable operators are mere franchisees who receives signals for transmission to the viewers only on payment of price promised or paid in terms of agreements entered by and between them. This is clear from the below set out terms of the Franchise Agreement:

In our view, the respondents as a cable operator, for the purpose of levy and collection of tax under sub-section (4a) of Section 4A of the Act have direct and close nexus with the entertainments made available to the viewer through their cable television network. The performance, film or programmes shown to the viewers through the cable television network come within the meaning of entertainments and therefore within the legislative competence of the State Legislature under Entry 62 of List II of Seventh Schedule to the Constitution of India to make law for the levy and collection of tax on such entertainments.